Using AI? An alert primer
Today’s artificial intelligence (AI) market is not easy to quantify. A common goal of companies in today’s data-driven world is to become smarter. But some reports reveal that some companies are cashing in on the AI hype without having much to do with the technology. The same report says that a considerable percentage of startups classified as AI companies are not using the technology in a way that is material to their business. It raises a question, why are they falsely labeling themselves as AI companies?
Being classified as an AI company in the present climate has its benefits. It is a great way to attract investors and secure funding for a business. Companies are falsely claiming to work in AI attract between 15 to 50 percent more capital in their funding rounds compared to other companies. Stating oneself as an AI-driven startup can prove fruitful in a competitive market. Potential clients—often exaggerating their technical capabilities —are drawn in by the buzzword and look to capitalize on it.
Check out: Top AI Companies
There are underlying dangers to this approach. AI presents risk being overshadowed by false claims even though it has the potential to transform the lives. When a company states themselves as a technology solution provider powered by AI when they are not will leave the clients with a negative and unrealistic perception of what AI can do.
AI is a powerful technology that has an infinite number of applications and has changed the way life operates. It will continue to do so as its capabilities grow. The growing number of companies reaping the benefits of AI and pushing its limits is proof of this potential. While over-hyping AI can create funding opportunities for businesses eager to drive innovation in this field, it can also lead to more severe consequences like damaging their long-term potential.